“The Merval continues the bullish streak in December and accumulates increases of 6.6% in pesos and 17.2% in dollars according to the ‘cash with settlement’, recovering a large part of what was lost since the electoral ‘trade’ (November )“said consulting firm Cohen.
“We believe that the Merval can go towards its resistance again, but we do not consider that it will be able to overcome it at the moment,” he added.
Investors, meanwhile, are closely following the slow negotiations with the IMF to reschedule a million-dollar debt, while the advance of the omicron strain conditions global markets.
The weekly financial activity in Argentina will last until Thursday.
Bonds
Yesterday, sovereign securities in dollars registered increases of up to 3.8%, with good performances both among securities issued under foreign law and among those launched under Argentine law. In this context, the Country Risk measured by the JP Morgan bank fell 19 basis points, to 1,743 units, a minimum of six days.
Fixed income represented 67% of the total traded in the domestic market and GD30 global bonds were the ones that generated the most volume in the retail market, with a rise in price of 2.8%.
Investors’ attention is mainly focused on the evolution of the negotiations with the International Monetary Fund. A virtuous agreement for the country would ease the pressure on reserves, taking into account that in 2022 alone, almost US $ 20,000 million must be paid to the organization, when net reserves are around US $ 2,500. millions.
“Net international reserves will return at the end of the year to near the minimum levels at the end of 2020, despite the positive current account balance, the persistence (and tightening) of exchange restrictions and the extraordinary income of SDR (Special Rights of Giro) of the IMF for some US $ 4.3 billion in September, “warned the consulting firm Ecolatina.
“The shortage of reserves will continue to pose challenges in the foreign exchange landscape during the summer, where the large wheat harvest has not yet translated into a substantial foreign exchange surplus for the Central Bank,” added Delphos Investment.
Among the securities in pesos, those indexed to inflation (CER) showed further increases. In the context of an acceleration in price increases, these instruments accumulate increases of up to 128% in 2021.
Source From: Ambito
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